Fintech Dot giant attracts an interest in private capital despite the slow climate of the treatment

A spicy economic climate has given rise to the fact that many bids paused, but this is not the case with Green Dot, the utah fintech better known for its prepayed debit cards. The first round offers for Green Dot took place last week and the process attracted private capital companies, according to banking and private capital executives. PE companies form consortia that would allow them to buy a green point, the people said. As they said, strategies also participate in the process.

The potential sale has been complicated, however, because Green Dot owns a bank, while federal law prohibits PE companies from having more than 24.9% of a bank. As a result, Green Dot could be sold in parts, said that the people who know the agreement, who requested that they not be identified so that they could speak candidate about the negotiations.

PE considents are not new to bank offers. Last year, Steve Mnuchin’s Strategic Capital of Freedom led a group of investors, including Hudson Bay Capital Management and Reverence Capital Partners, in Buy 40% of the New York Community Bank with trouble, which has since been received Financial Flagstar.

The news of the sale comes several weeks from Green Dot announced In March he had hired Citi to launch a process that explores possible strategic alternatives. It usually means that a company is considering a sale, although Green Dot did not provide more information. The Fintech also named William Jacobs, who was president of his advice, as a temporary CEO. George Gresham, who had been the CEO of Green Dot since 2022, left the President and CEO from March 7, according to one Presentation.

Green Dot’s shares have jumped more than 12% since the company announced that it would explore strategic alternatives. Wednesday afternoon shares traded to $ 8.05 per action, giving Fintech a market capitalization of $ 443.1 million. Green Dot is expected to inform the results of the first quarter on Thursday, May 8.

Green Dot and Citi rejected the comments.

Founded in 1999, Green Dot offers various different financial products, such as debit, check, credit, prepaid and payroll cards. Green Dot Bank has $ 5.3 billion in assets and afford Banking services for Apple Cash, which allows users to send the money. The company also has a long -term relationship with Walmart and is Walmart’s money issuing bank cards.

Apple and Walmart are the two largest clients in Green Dot, who generate 65% of $ 1.7 billion income from Fintech in the year 2024, according to a mark on March 10 by Cristopher Kennedy, a capital research analyst of William Blair. Apple produced 50%, or $ 948 million in income, for Green Dot, while Walmart generated 10%, or $ 171 million, wrote Kennedy in the note.

Green’s Dot’s Bank Charter has limited the list of possible buyers for the company, while the federal rules that regulate Kennedy wrote the debit exchange rates that have led to a limited interest of larger institutions, wrote Kennedy in the research note. “That said, we believe that the potentially lower regulatory loads than the financial institutions of the new administration could promote a greater bank consolidation and an improved environment for (banking as a service),” he added.

A buffer fintech?

President Trump announced his “liberation day” rates on April 2, making the broad market sinking and IPOs, which was expected to return this year, to go to the ice. The mergers were also affected. Many new offers, those transactions that have not yet launched, paused. Some offers that were already in the process, such as Green Dot, go ahead, said the bankers.

“Things are not the disaster we feared they would be on April 2,” a banker said.

Transactions are expected to take longer, probably six to nine months instead of three to four. Importers, consumer goods companies that sell products such as shoes and toys and manufacturers that depend on foreign pieces, will probably experience a direct impact of the rates. Financial software companies may initially experience buffer, but this will disappear, bankers said. As they said, many companies will feel “the pinch” when buying software. “Finally, everything flows,” said a second banker.

This story originally presented to Fortune.com